Govt’s cash balances halve in a month with rise in infra spending

The government’s cash balances have nearly halved in about a month to Rs 2.3 lakh crore as it accelerates spending on infrastructure. Higher federal spending, though potentially inflationary, should boost economic growth that fell below even the central bank’s forecast last quarter. Cash balances with the government were at Rs 2.3 lakh crore on September … Read more

Fitch Ratings flags high fiscal deficit target

Agency says lower debt trajectory key to reviewing its negative rating outlook on India Rating agencies are not enthused by the fiscal consolidation road map and the lack of major reform proposals in the Union Budget. Fitch Ratings, which has a negative outlook on India’s sovereign rating, said that beyond the higher capex drive, the … Read more

Finance Commission to meet its economic advisory panel on September 4

The topic of the meeting is ‘Final discussion on GDP growth, tax buoyancy of the Centre and the States, GST compensation, revenue deficit grant and fiscal consolidation’ The 15th Finance Commission will hold a meeting with its economic advisory panel on Friday to discuss issues of GDP growth, GST compensation and fiscal consolidation. Chairman N.K. … Read more

India set to cap stimulus package at $60 billion to protect credit rating: Report

NEW DELHI: The government is likely to cap its overall spending on coronavirus-related relief at around Rs 4.5 lakh crore ($60 billion), due to concerns that excess spending could trigger a sovereign rating downgrade, two senior government officials said. “We have to be cautious as downgrades have started happening for some countries and rating agencies … Read more

No plan to ease fiscal deficit targets

Despite the strain on government finances due to the COVID-19 pandemic, there is no credible proposal to amend the legislation meant to control the fiscal deficit, Chairman of the 15th Finance Commission N.K. Singh said. Speaking to presspersons after a two-day meeting of the Commission’s Economic Advisory Council, Mr. Singh said the government was currently … Read more